Inflation in Brazil rises to 1.2% in October, highest since 1995

Inflation in Brazil rises to 1.2% in October, highest since 1995

In the first ten months of 2021, the IPCA-15 accumulates an increase of 8.30%.

The items with the most inflationary weight were electric energy with a rise of 3.9%, fuels 2.03%, transport 2.06%, housing 1.87% and food 1.38%.

The increase in inflation exceeded the projections made by specialists consulted by the daily Valor Economico, who had projected a rise of 0.98% in October compared to September and an increase of 10.1% in the calculation of the last 12 months.

The inflation target set by the government for 2021 is 3.75% with a tolerance of up to 5.25%.

The Focus Bulletin published on Monday by the Central Bank predicted that inflation in 2021 will be 8.96%.

It is speculated that this Wednesday the Monetary Policy Committee (Copom) of the Central Bank will once again increase the reference interest rate, which is currently 6.25%, as a way to stop the skyrocketing of prices through a contraction in the demand. (ANSA).

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